School of Economics Course Outline 20089 by NeemiaTialata

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									                School of Economics Course Outline 2008/9

                   ECON107: APPLIED ECONOMETRICS

Instructor
Associate Professor SU Liangjun
Office: SESS Building, Room #05-06002
Email: ljsu@smu.edu.sg
Tel: 6828 0386
Homepage for the course: http://www.mysmu.edu/faculty/ljsu/Econ107-2008.html
Office Hours: 9:00-11:00am on Wednesdays at SESS Building, Room #05-06002, OR
by appointment

Teaching Assistant
TBA
Office hours:
Phone:
E-mail:

Course Overview
This is an introductory econometrics course for the students specialized in economics,
business, or the like. It introduces students to multiple regression methods for analyzing
data in economics and related disciplines. Extensions include model specification
diagnostics, multicollinearity, serial correlation, heteroskedastictiy, qualitative dependent
variables, simultaneous equations, and time series data analysis. Throughout, we will
focus on both understanding and doing. The understanding will come from lectures, class
discussions, and problem solving. The doing will come from extensive statistical
software use. Students seeking a treatment of econometric theory with a higher level of
mathematics should take Econ 207 (Intermediate Econometrics).

Course Objectives
This course will introduce you to the most important empirical methods in economics and
enable you to conduct applied econometric research. These methods are widely used in
business, economics and finance, and can be enhanced by advanced courses on
econometrics. At the end of the course, you will be able to
     Demonstrate your understanding of the appropriate econometric models for
     analyzing economic data;
     Use Eviews in the estimation and testing of econometric relationships;
     Interpret and discuss the results from your econometric analysis.

Class Sessions
3-hour duration per week. Each session will involve a lecture and a discussion of
assignments and software use.




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Outline of Topics
  Topic 1: An Overview of Regression Analysis (Studenmund, Chapter 1)
  Topic 2: Ordinary Least Squares (Studenmund, Chapter 2,3)
  Topic 3: The Classical Model (Studenmund, Chapter 4)
  Topic 4: Hypothesis Testing (Studenmund, Chapter 5)
  Topic 5: Specification: Choosing the Independent Variable and Functional Form
  (Studenmund, Chapters 6 and 7)
  Topic 6: Multicollinearity (Studenmund, Chapter 8)
  Topic 7: Serial Correlation (Studenmund, Chapter 9)
  Topic 8: Heteroskedasticity (Studenmund, Chapter 10)
  Topic 9: Dummy Dependent Variable (Studenmund, Chapter 13)
  Topic 10: Simultaneous Equations (Studenmund, Chapter 14)
  Topic 11: Time Series Model and Forecasting (Studenmund, Chapter 12, 15)


Required Textbook
                                                              th
A.H. Studenmund, Using Econometrics: A Practical Guide, 5 edition, Addison Wesley,
Longman 2006.
Note:
1. This is a required textbook. There will be regular use of this book for lectures. A
    useful website related to the textbook is
http://occawlonline.pearsoned.com/bookbind/pubbooks/studenmund_awl/
2. In addition to the textbook, I will post my lecture notes on the course webpage.
    These notes can be best viewed as a condensed version of the textbook. It is strongly
    recommended that you read the textbook or lecture note ahead before you attend the
    lecture. Although the lecture notes are self-contained and highly useful studying
    material, you will find it essential for success in the course to regularly follow the
    textbook reading and applications on the topic covered.

Computing Needs
Applications of econometrics require running statistical software. In this class, I will
teach you how to run the software Eviews, available from SMU network at
\\gps02\eviews5). Instructions on installation Eviews into your own laptop are available
from the course homepage. From time to time you need to bring your own laptop to the
classroom. To facilitate your study, you may consider purchasing the student version of
Eviews (together with the manual) from the book store.

Supplementary Books
R.R. Johnson, A Guide to Using Eviews with Using Econometrics: A Practical Guide.

Note:
1. This guide demonstrates how to use Eviews to complete econometric analysis
   illustrated in the textbook by Studenmund. It serves as an alternative to Eviews
   User’s Guide and is sufficient for this course. The PDF file of this guide is available
   from the course homepage. We will go over the relevant chapters of this guide during
   the weekly computer sessions, so you should read the relevant chapters of the guide


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     before you come to the computer sessions.

Assessment & Evaluation
Class participation: 10%
Homework assignments: 30%
Mid-term exam (2 hours): 25%
Final exam (2 hours): 35%.
Note:
1.   I reserve the privilege of subjectively assigning up to 10 percentage points to account for
     class participation and interaction with me in the classroom. I may or may not exercise this
     privilege. NEVERLESS, IF YOU MISS THE CLASS FOR 3 TIMES OR MORE, YOU
     WILL LOSE ALL 10 PERCENTAGE POINTS.
2.   Homework will be assigned approximately every other week. You have at least one week to
     finish each homework. Group study and discussions are strongly encouraged for doing the
     homework. But you should submit your own answers at the beginning of the class on the due
     date. I will post the solution to each homework shortly after it is due. NO LATE
     HOMEWORK WILL BE ACCEPTED.
3.   There will be no make-up exams. If for some justifiable reason you miss the mid-term exam,
     your final will carry an extra weight of 25% from the midterm. If at all possible, the reason
     must be cleared with me in advance. THE FINAL EXAM MUST BE TAKEN IN ORDER
     TO GET A GRADE FOR THE COURSE.

Prerequisite
Core001, Math001, and Stat101 (A or B).




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